Lower natural gas price levels in recent times and the subsequent drop in wholesale electricity prices have reduced retail electricity tariffs but widened the deficit of the Public Service Compensation (YKO) special account, meaning additional state budget money will be needed to fill the gap.

This special account’s revenues have decreased, while outlays subsidizing electricity used by consumers on the country’s non-interconnected islands and by low-income households have remained steady.

Just weeks ago, energy ministry and finance ministry officials determined, during talks, that a sum of roughly 300 million euros would need to be drawn from the state budget to partially cover the Public Service Compensation (YKO) special account’s deficit. However, given latest conditions, an additional sum of at least 100 million euros in budget money will be needed.

The two ministries reached an initial agreement on the state-budget sum required in mid-February, but ensuing calculations following a significant drop in wholesale electricity prices revealed that the Public Service Compensation (YKO) special account’s deficit has widened further.

The additional state-budget sum of at least 100 million euros needed for this account may require officials to revise an earlier plan dividing its deficit, estimated at 700 million euros, into three parts for gradual coverage between this year and 2026.